Dive into some of the details in loan coding, CECL and how
they both are impacted by the pandemic. Segments are getting more
granular, stress-testing needs a different approach, and
qualitative analysis is murkier than ever.
Topics discussed in this episode:
3:48 Significant changes in segmenting
6:18 Don't get too crazy with your segments
6:48 The difference between segments for CECL vs stress
testing
8:32 Changes in CECL segments, forecast and qualitative
analysis
9:30 The length of the forecast horizon
10:20 Documentation for CECL
12:50 Farm lenders are not getting a pass in this
recession
14:08 Qualitative Adjustments
17:05 What can you rely on?
About Paula King:
Paula King, CPA, is Senior Advisor for Abrigo Advisory
Services, part of a team of subject matter experts assisting
financial institutions nationwide in the interpretation and
application of Current Expected Credit Loss (CECL), credit
processes, policies and procedures and model validations.
Paula has held executive positions, including as Chief
Financial Officer, in the banking industry for more than 25 years.
As a former CFO, Paula has extensive experience in the design,
preparation and reporting of the allowance for loan and lease
losses, including ensuring compliance with regulatory and audit
requirements, and creating allowance policies, procedures, and
processes. In addition, she has served on internal credit
committees and worked with loan operations and lending staffs to
improve credit processes and enhance the capabilities of a variety
of core loan systems.
Prior to her banking career, she was associated with a
regional public accounting firm and specialized in bank audit
services.
Paula has been responsible for SEC and financial reporting,
strategic planning, and has served as Chief Risk and Compliance
Officer. She is a bank co-founder and served as a member of the
board of directors through its merger with another financial
institution and has been a de novo bank consultant to boards and
senior management teams.
Interviews with senior credit and lending professionals at financial institutions across the United States, their regulators and banking advisors about how to assess and mitigate credit risk in challenging times.